The Strategic Petroleum Reserve in Freeport, US
Oil stocks have become truly strategic
Strategic stock releases designed to alleviate price shocks emanating from disruptions came into their own after the Russia crisis
The world has experienced 20 oil market disruptions over the last 50 years. Up until this decade, the maximum price increase was predictable. Supply losses—or fears of losses—caused those holding stocks to hoard and those who needed stocks to bid aggressively, pushing prices up. Over that span, consuming nations had the option to moderate the price impact of disruptions by drawing down strategic stocks. Their leaders ignored such calls until 2022, when a significant release broke the price rise prompted by Russia’s invasion of Ukraine. In each of the disruptions before 2022, government officials would say the same thing. For example, in 2019, Brian Hook, US special representative for Iran an
Also in this section
10 December 2024
Sector at economic and strategic crossroads, but clear path ahead for midstream additions
30 November 2024
Decades of turmoil have left Iraq’s vast energy potential underutilised, but renewed investment and strategic reforms are transforming it into a key player in the region
29 November 2024
The country's fifth and sixth oil and gas bid rounds have attracted a range of new players with gas as well as oil ambitions—and there’s a seismic shift in the contracting process
28 November 2024
Iraq is charting a new path for its indigenous resources and its youth, hoping to electrify the future with a mix of reforms and modernisation to fuel growth
